Queensland Leads in August Approvals
More positive news that we have turned the corner in Queensland. An increase in Queensland in building approvals in the month of August of defying a national fall of 0.4% is certainly welcome news.
Queensland Leads in August Approvals
Queensland has come out ahead of the rest of country with an increase in approvals of detached houses of 16.4 per cent in the month of August defying the national fall of 0.4 per cent, according to ABS data released today (4 October 2011).
Including the volatile units sector, total Queensland approvals were up 19.6% in August.
Whilst the monthly rise in total approvals is encouraging, it was not enough to prevent a decline of 1.9% in Queensland over the August ‘quarter’. Nationally, quarterly approvals fell 3.0%.
Graph 1 – Approved Dwelling Units: QLD
(Moving quarterly totals, Seasonally Adjuted)
Graph 2 – Total Approved Dwellings: State Comparisons
(Annual, Seasonally Adjusted)
The $10,000 Queensland Building Boost that began on 1 August is likely to have contributed to the lift in approvals in the month of August, however, given the time lag involved between contract signing and the granting of a building approval, we will need to wait another month or two before passing fair judgement on the effectiveness of the Boost.
Of course the industry is hopeful that the grant will have a significant effect in increasing new home building activity over the remainder of the year, however, we are urging the government to take swift action if indicators point to a lacklustre take-up rate.
We are calling on the Deputy Premier and Treasurer Andrew Fraser to consider an extension to the Building Boost as part his Mid-Year Budget Review in December if building activity has not improved.
There is a very long way to go for approvals to return to historical average levels and to ensure the continued recovery of the sector once the Boost ends, it is essential that both sides of politics develop policies that address supply side obstacles to new housing and give, as a minimum, a commitment to place no new or increased taxes or charges on the housing industry for the next three years.
Source: Brian Stewart (CEO)
Urban Development Institute of Australia (UDIA)
